The words debit and credit are used in two ways in accounting: ''to debit an account'' and ''a debit balance.'' Explain both usages of the terms debit and credit.
Answer to relevant QuestionsAll accounts have normal balances. What is the normal balance of each of these accounts? a. Cash b. Sales c. Notes payable d. Inventory e. Retained earnings f. Salary expense g. Equipment h. Unearned What kinds of errors will a trial balance detect? What kinds of errors will not be detectable by a trial balance? Of all the events that occur each day, how would you describe those that are recorded in a firm's accounting records? Listed below are the ledger accounts for Borges Inc. at December 31, 2011. All accounts have normal balances. Required: Prepare a trial balance for Borges at December 31, 2011. Goal Systems, a business consulting firm, engaged in the following transactions: a. Sold common stock for $50,000 cash b. Borrowed $20,000 from a bank c. Purchased equipment for $7,000 cash d. Prepaid rent on office space ...
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